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March 2018

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The Indonesia Investment Coordinating Board (BKPM) has launched a special desk to solve issues related to textile and footwear industries, as per Indonesian media reports.

Many textile and footwear industries in Indonesia have been facing problems of layoffs and shutdowns due to economic slowdown. The special desk is expected to help these industries secure their businesses and prevent layoffs.

“We received reports that 13 textile companies face problems, 8 of which plan to reduce production and 5 others plan to stop their businesses,” said Franky Sibarani, head of BKPM at a press conference.

Azhar Lubnis, deputy director for investment monitoring and realisation, BKPM, said that some of the problem that hampers the realisation of the investment is the existence of interlocking regulations. The special desk is expected to resolve the investment anomalies in the textile industry.

Earlier this month, BKPM said the textile industry had laid off around 39,000 workers and according to the Indonesia Textile Association (API), at least 6,000 of the 1.5 million workers in the sector were laid off in May.

Even in the hard times of layoffs and reduced production, the investment realisation in textile industry of Indonesia increased by 58 per cent to $290.52 million in the first semester of 2015. The apparel industry grew by 16 per cent while the fibre processing sector grew by 213 per cent. (HO)